EUR/USD, GBP/USD and AUD/USD decline into key support
EUR/USD, GBP/USD and AUD/USD continue their declines, with key support levels coming into play.
EUR/USD weakening after industrial production data
EUR/USD has been on the slide of late, with yesterday’s German factory orders decline being followed up by an equally disappointing industrial production release this morning. This helps build on a bearish narrative that has been in play since the pair started to reverse from a confluence of Fibonacci and trendline resistance at the turn of the year.
The drop below $1.0981 provides us with a bearish continuation signal, pointing towards further downside to come. As such, further losses are likely, with a break through the $1.1014 resistance level providing a signal that we are going to enter a wider retracement mode. Ultimately, we would need to break through $1.1096 to negate this bearish outlook and signal a wider recovery phase coming into play.
.png)
GBP/USD declines towards key support
GBP/USD has also been weakening, with the pair moving into fresh 2020 lows yesterday.
This decline has taken us into an important area of support, where a break below $1.2905 would bring about a wider bearish picture for the pair. For now, there is a chance we will rise moderately to retrace some of yesterdays weakness. We would need to break $1.307 to bring about a bullish signal. Until then, the big question is whether these declines are going to take us back below the $1.2905 support level.
AUD/USD heads back towards critical support level
AUD/USD is on the slide, with the pair heading lower again after a rebound into trendline resistance.
This decline points towards another challenge of the $0.6671 support level, which would provide a new ten-year low if broken. As such, a drop below that level would provide a signal that we are heading onto the next leg lower in this wider downtrend. With that in mind, keep an eye out for whether the price can break and sustain below that major support level.
.png)
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
